Bond yields edged lower on Thursday, as the federal cabinet's approval for strategic disinvestment of the government’s stake in five state-run companies eased concerns about a likely fiscal slippage.
In the global market, US long-dated yields fell to three-week lows on Wednesday, weighed down by renewed jitters about trade talks with China after news, citing sources, that a ‘phase one’ or preliminary deal may not be completed this year. Furthermore, Oil prices retreated as a spat over Hong Kong added to worries of a delay in any US-China trade deal, after posting steep gains in the previous session on bullish US crude inventory data.
Back home, the yields on new 10 year Government Stock were trading 2 basis points lower at 6.48% from its previous close of 6.46% on Wednesday.
The benchmark five-year interest rates were trading 3 basis points higher at 6.26% from its previous close of 6.23% on Wednesday.